INTEREST ON FDR

[Manali Sharma]

If a person has RENTAL INCOME and has INTEREST INCOME ON FDR, whether it will be included in GST ANNUAL RETURN and if YES then what will be the TREATMENT for that?

[Ganeshan Kalyani]

Whether the FDR is in connection with the business?

[KASTURI SETHI]

If FDR pertains to non-business, interest is not to be shown. Pl. note that if any transaction is 'NOT supply ' as per definition of CGST Act the department has nothing to do with this. The column 'non-GST supply' has been created in the Annual Return for examination whether the party is right or not in this aspect. Whether transaction actually falls in the category of Non-GST supply ? Non-GST supply has no impact on GST. The taxer payers are committing Himalayan blunders by treating taxable/exempted supply as Non-GST supply. So one has to be ultra-cautious.

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not complete. If the rental income is in the furtherance of business it will be included in the GST Annual Return. Interest income on FDR is not required.

AI Summary

Interest income on FDR excluded from GST annual return; rental income included if in furtherance of business. Interest on an FDR that pertains to non-business activity is not to be shown in the GST annual return because it constitutes a non-GST supply and has no GST effect. The annual return includes a column for non-GST supplies for verification. Rental income received in furtherance of business must be included in the GST annual return; the controlling test is whether the receipt arises in connection with and in furtherance of the business.